What is the principal in the context of interest calculation?

سود کے حساب کتاب کے تناظر میں پرنسپل کیا ہے؟

Total interest earned

Rate of interest

Total amount after interest

Original sum of money invested or loaned

The principal is the initial amount of money borrowed or invested.

It serves as the basis for calculating interest.

It is the original sum of money before any interest is earned or paid.